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  Q-700 Premium SMS FAQ

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At Quios, we want you to take full advantage of our services. This FAQ will get you started with a high level overview of how the short code and premium SMS process works in th US. Visitors who have experience with short codes internationally will notice that the carrier requirements in the US are far more restrictive than anywhere in the world.

If you would like more information, we can send you a our FREE 83 page white paper containing full details on how to run successful mobile marketing and premium billing campaigns in the US. click here to request the FREE white paper.

1. Getting Started
1.1. What is Premium SMS?
1.2. What is the market potential of Premium SMS in the US?
1.3. Give me some examples of successful PSMS applications.
1.4. How do I launch a Premium SMS campaign?
1.5. What are the Government regulations?
1.6. Which carriers are participating?
1.7. What is the typical overall implementation timetable?
1.8. Ok, I got it. I'm ready to start. What are the next steps?

2. Obtaining Common Short Codes (CSC)
2.1. What is a Common Short Code?
2.2. What is the format of a CSC?
2.3. Why do I need a CSC?
2.4. How do I obtain a CSC?
2.5. How much will it cost?
2.6. Am I guaranteed to be able to use my CSC, once I obtain approval?
2.7. What's the difference between a random and a vanity CSC?
2.8. Can I use shared Short Codes?
2.9. Ok, I got it. I'm ready to start. What are the next steps?

3. Setting up a Short Code Campaign
3.1. I got my CSC, how do I get my service activated?
3.2. Can Quios help me obtain individual carrier approvals?
3.3. What are the carriers' approval criteria?
3.4. What types of content are acceptable?
3.5. Can I launch m-commerce services?
3.6. Can I launch subscription services?
3.7. Can I launch non-premium services with my CSC?
3.8. How do I connect my application to the various carriers?
3.9. Do I need a specific billing interface?
3.10. What SMS features are supported with the various carriers?
3.11. Where can I find the Quios connection API details?
3.12. I don't want to use an API, can Quios manage the entire campaign
for me?
3.13. Ok, I got it. I'm ready to start. What are the next steps?

4. Receiving Payment
4.1. What can I charge my end-user?
4.2. Do carriers offer MO or MT billing?
4.3. What are the costs involved in setting up a campaign ?
4.4. What are the short code lease costs?
4.5. What are the short code provisioning costs?
4.6. What are the service charges?
4.7. What are the outpayments?
4.8. What's the difference between premium and standard rates?
4.9. What about charge-backs?
4.10. What are the payment terms for the short code lease charges?
4.11. What are the payment terms for the service charges?
4.12. What are the payment terms for the outpayments ?
4.13. What about end-user refunds?
4.14. Are there any message charges involved in premium transactions?
4.15. What is the end-user paying for the premium transactions?
4.16. How is the revenue share determined?
4.17. What is the revenue share and invoicing process?
4.18. Will I get paid for all my submitted messages?
4.19. What management information reports are available?
4.20. Ok, I got it. I'm ready to start. What are the next steps?


1. Getting Started

1.1. What is Premium SMS ?
Premium SMS or PSMS is a mechanism whereby the mobile phone user or end user pays a premium for either sending or receiving a text message. The premium charge is billed on his mobile phone bill or deducted from his prepaid credit. A portion of this premium charge is shared with the content/application provider (the ‘outpayment’).
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1.2. What is the market potential of Premium SMS in the US?
According to IDC (US SMS Forecast, 2003-2007) the US SMS market is growing at a compound annual rate of 28%. Over 12 billion SMS messages are sent every month (CTIA website). According to Forrester, 76% of all 18-24 yr old are active text message users, 58% of the 25-34 age group, 43% of the 35-44, 33% of the 45-54, 22% of the 55-64, and 19% of the 65 yr old and older are active texters.
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1.3. Give me some examples of successful PSMS applications.
Check out examples of PSMS campaigns for examples of how to use PSMS.
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1.4. How do I launch a Premium SMS campaign ?
First, you need to obtain a Common Short Code (See Obtaining CSCs for more details on how to do so). Secondly, you project will require individual carrier approvals (of course we obtain those on your behalf - see Setting up a PSMS Campaign). Thirdly, you need to integrate your application with our gateway so that you can receive and send PSMS messages (see our documentation APIs for technical details).
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1.5. What are the Government regulations ?
There is no independent regulatory body in the US to regulate Premium SMS services. Service restrictions are imposed by the respective carriers and hence will differ between carriers. However, we highly recommend that Customers follow the Code of Conduct of the Mobile Marketing Association for all PSMS campaigns that have a marketing focus.

1.6. Which carriers are participating ?
12 carriers are participating in the CSC project: Verizon Wireless, Cingular, AT&T Wireless, Sprint, T-Mobile, Nextel, Virgin Mobile, Dobson Communications, US Cellular, Cricket Communications, Western Wireless and Alltel. Following carriers have implemented Premium SMS billing: Verizon, AT&T/Cingular, Sprint/Nextel/Boost, T-Mobile, Alltel, Dobson/Cellular One, and Virgin Mobile. As more carriers are implementing Premium SMS, Quios will extend its network to include them.
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1.7. What is the typical overall implementation timetable ?
While implementation varies greatly depending on the nature of the campaign, following timetable can be used as a rough estimate. We assume that ‘x’ is the launch date of your campaign:

x - 70 days:
complete CSC form, obtain CSC approval.
x - 60 days:
start carrier approval requests
x - 15 days:
short code is provisioned. Start of transmission and billing integration testing.
x :
launch of PSMS campaign
x + 60 days:
first revenue reaches customer account


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1.8. Ok, I got it. I'm ready to start. What are the next steps?
Contact us to receive our FREE white paper and a customized quote.
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2. Obtaining Common Short Codes (CSC)

2.1. What is a Common Short Code ?
A short code number is telephone number, traditionally 4-6 digits in length (5 or 6 digits in the US), which is specific to a network operator (or a number of networks if they have formalized an agreement between them). A short code number is allocated to you for your mobile campaign – there is scope for you to choose from a range of available numbers. Note that you can combine up to 8 price points on the same short code. Some carriers do impose restrictions on which services can be combined on the same code. More details can be found in our FREE white paper.
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2.2. What is the format of a CSC ?
In the US, a short code is either 5 digits long from 20000 until 99999, or 6 digits from 222222 to 999999. Short codes are allocated on a first come, first served basis.
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2.3. Why do I need a CSC ?
There are 2 reasons why you need a short code: (i) a short code is the number associated with your application, and gives end-users the possibility to send a message to your application. The short code is the destination number of the message they send. (ii) a short code is associated in the carrier's billing systems with a premium charge. Sending a message from your application's short code to an end-user will trigger the premium billing. In addition to these technical reasons, there are significant commercial reasons to obtain a short code. Short codes are easy for customers to remember, and some short codes have great branding potential.
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2.4. How do I obtain a CSC?
You can obtain your CSC from www.usshortcodes.com, or alternatively, have Quios manage the process for you. You need to fill out the order form to obtain short code approval as well as pay the required short code lease fees. Please contact us to get the process started.
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2.5. How much will it cost?
Short codes can be leased for 3/6/12 months. Random short codes cost $500 per month, vanity short codes $1,000 per month. The lease payment needs to be made upfront for the entire period.
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2.6. Am I guaranteed to be able to use my CSC, once I obtain approval?
No. Once your CSC is approved and paid for, no one but you will be able to use that number for the duration of your lease. However, that doesn't mean the carrier will approve the campaign associated with the short code. You will need to obtain individual carrier approval for each campaign that is associated with your short code. Quios takes care of all administrative requirements and will handle the approval process for you.
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2.7. What's the difference between a random and a vanity CSC ?
A random short code is a (5 digit) code that is assigned to you randomly. It is a dedicated short code (ie. no one but you will be able to use the number) but the number is selected at random. With a vanity short code (5 or 6 digits), you decide what the number will be (subject to availability). You can select an easy to remember number (‘12345’) or a number that offers branding possibilities for your business (‘APPLE’ or ‘27753’ for Apple Computer). Check here to see if your CSC is still available.
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2.8. Can I use shared Short Codes ?
Yes, shared short code can be deployed in certain circumstances. If you share your code with multiple customers, you will ultimately be responsible for all activity on that code; you need to ensure that all activity falls within the campaign approvals you've received from the carriers, and you need to make sure to enforce all carrier requirements related to consumer permissions.
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2.9. Ok, I got it. I'm ready to start. What are the next steps?
Contact us to receive our FREE white paper and a customized quote.
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3. Setting up a Short Code Campaign

3.1. I got my CSC, how do I get my service activated?
Once you've obtained your CSC, getting your service activated requires completion of following steps:

(i) Obtain carrier approval
(ii) Provisioning of CSC on carrier networks
(iii) Account set up with Quios
(iv) Integration with Quios platform
(v) Carrier certification

These steps are further detailed below:

(i) Obtain carrier approval
Each carrier has the right to opt-in or out of any short code campaign for any reason. Carriers don't have to justify their decision. Quios uses the order form filled out for the CSC acquisition to obtain the necessary approvals. Approvals are typically obtained within 4 weeks of initial submission depending on the carrier and the type of campaign.

(ii) Provisioning of the CSC on carrier networks
Once approved, the carrier will initiate the technical activation process of the short code. This usually takes between 1 and 2 weeks depending on the carrier.

(iii) Account set up with Quios
Quios will provision a customer account within 24 hours after receiving the necessary customer information as per this account provisioning form.

(iv) Integration with Quios platform
Quios supports XML/SOAP (‘Qcaster4.0’) as well as SMPP for connecting your application to our gateway platform.
Click here
for further information about our APIs.

(v) Carrier Certification
Carriers require end-to-end testing of applications before launch of service. Quios will coordinate such testing between customer, Quios, and the respective carriers.

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3.2. Can Quios help me obtain individual carrier approvals ?
Yes, Quios handles the approval process for you. You fill out the order form and we do the rest. We will identify possible problem areas and help you correct those so as to maximize your chances for speedy carrier approval.
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3.3. What are the carriers' approval criteria ?
Carrier approval criteria vary widely. Here are a couple of general guidelines:

  • All carriers will reject adult, gambling, or violence related campaigns. AT&T Mobility will reject all campaigns involving an alcohol brand.
  • Nextel, Boost, and Alltel will reject binary message campaigns (with content such as ringtones, icons, etc.). T-Mobile restricts Java applications and games to a pre-approved 'white list'.
  • Verizon will reject all chat campaigns. T-Mobile limits chat campaigns to 99c per message, Sprint to 50c per message, and Dobson only allows unlimited chat for a monthly subscription fee.
  • Sweepstake based campaigns are generally ok, but will take longer to approve because of legal review required prior to approval.
  • T-Mobile will reject m-commerce based campaigns (where the value of the service is unrelated to the mobile phone).

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3.4. What types of content are acceptable ?
Carrier content guidelines can be summarized as follows:

  • No adult, gambling, violence related content, or content that is unlawful, harmful, threatening, defamatory, obscene, harassing, or racially, ethically or otherwise objectionable. Also not allowed are services that facilitate illegal activity, promote violence, promote discrimination, promote illegal activities, or incorporate any materials that infringe or assist others to infringe on any copyright, trademark, or other intellectual property rights.

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3.5. Can I launch m-commerce services ?
M-commerce services are services whereby the value of the service is unrelated to the mobile phone. Example: paying for your parking ticket by SMS, paying for WIFI access through SMS, etc. Carriers will evaluate their participation in m-commerce services on a case-by-case basis, except for T-Mobile who always rejects them.
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3.6. Can I launch subscription services?
Yes, all carriers support subscription services. It is very important to be clear about how end-users can opt-out of a subscription service. Cingular requires monthly subscription only.
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3.7. Can I launch non-premium services with my CSC?
Yes, you can. The Quios gateway supports both premium and non-premium messaging. Please see the pricing sheet for details on standard messaging. This feature is most commonly used in marketing campaigns where brands want the benefits of 2way messaging and easy to remember short codes, but without charging end-users. Also, customers can use this feature to send normal information messages to end-users.
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3.8. How do I connect my application to the various carriers?
By working with Quios, you will only need one connection to our platform, either using our SOAP API (Qcaster4.0) or our SMPP interface. Quios takes care of the routing and billing interfaces with the various carriers.
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3.9. Do I need a specific billing interface?
No. The advantage of working with Quios is that billing will be totally transparent for you. The billing with the various carriers will be triggered by the premium short code that is assigned to your campaign.
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3.10. What SMS features are supported with the various carriers?

  • binary messaging: Cingular, AT&T, T-Mobile, Sprint, Nextel (please note: while binary messaging may be technically possible, some carriers will not approve premium campaigns that include binary messaging --- see 3.4
  • handset delivery receipts: AT&T (TDMA only), Verizon, Sprint, Tmobile, Nextel
  • dynamic originators: not supported


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3.11. Where can I find the Quios connection API details?
Quios offers a choice between an XML/SOAP based interface (called Qcaster4.0) or SMPP v3.4.
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3.12. I don't want to use an API, can Quios manage the entire campaign for me ?
Yes, marketing agencies and brands often rely on Quios for the execution of the entire campaign. Quios and the marketing agency/brand together design the message flow between the brand and the end-user, and Quios will manage the entire campaign on behalf of customer, providing customer will real-time traffic reports and management intelligence information to monitor the success of the campaign.
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3.13. Ok, I got it. I'm ready to start. What are the next steps?
Contact us to receive our FREE white paper and a customized quote.
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4. Receiving Payment

4.1. What can I charge my end user ?
Each network operator is responsible for setting its own range of tariff rates from which you can choose a tariff to charge your customer. Therefore it is possible that you may have to charge a different tariff from operator to operator. However, there are a number of price points that are available across all major US carriers: $0.25, $0.30, $0.35, $0.40, $0.45, $0.50, $0.59, $0.75, $0.99, $1.00, $1.25, $1.50, $1.75, $1.99, $2.00, $2.25, $2.49, $2.50, $2.99, $3.00, $3.99, $4.99, $5.00, $5.99, $6.99, $7.99, $8.99, $9.99, $11.96, $15.00, $15.96, $19.99, $29.99. Boost restricts premium SMS tariffs to $6.99. We highly recommend you use one of these common price points for your cross carrier campaigns since it will highly simplify your marketing and communication efforts to promote your service to end-users.
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4.2. Do carriers offer MO or MT billing ?
Carriers in the US charge on the Mobile Terminated message.
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4.3. What are the costs involved in setting up a campaign ?
There are three types of costs involved in setting up a campaign:

(i) Short code lease costs. These are the costs for acquiring a short code.
(ii) Short code provisioning costs. These are the costs for provisioning the short code on the various carrier networks.
(iii) Service charges. These are the costs for setting up and maintaining the service between you and Quios.

See price sheet for details.
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4.4. What are the short code lease costs?
Short codes are leased from Neustar, not from the carriers themselves. Neustar is charging a monthly fee for leasing short codes.

See price sheet for details.
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4.5. What are the short code provisioning costs?
Some carriers are charging a fixed fee to provision a short code on their network and complete the end-to-end testing for message routing and billing. Hence, the short code provisioning cost, which is a one-time cost, incurred with every new short code launch.

See price sheet for details.
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4.6. What are the service charges?
Service charges are the setup and maintenance fees charged by Quios for implementing a connection to the Quios platform, and maintaining such connection according to the agreed SLA. These costs include all technical and commercial assistance in implementing cross-carrier premium campaigns, such as obtaining carrier approvals, assisting you with the integration, performing end-to-end short code testing, etc..

See price sheet for details.
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4.7. What are the outpayments?
The outpayment rate is the rate Quios pays back to you based on the number of messages successfully billed by the carrier per month. Since rates differ by carrier, they are listed separately. Quios is the only provider offering the option of a 'Flat Rate' pricing model. For a fixed fee per month, we will pay you 100% of the outpayments we receive.

See price sheet for details.
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4.8. What is the difference between premium and standard rates?
Premium rates are the outpayment rates (Quios pays you) on premium billed messages. Standard rates are the message costs (you pay Quios) for non-premium billed messages.
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4.9. What about charge-backs?
Contractually, carriers have the possibility to credit end-users, and deduct such credit from the revenue share. If this occurs, Quios will provide a full statement of revenue share and charge-backs. Charge-backs are not a common occurrence.
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4.10. What are the payment terms for the short code lease charges?
Short code lease charges need to be paid upfront for the entire lease period. Only after such payment is made, can the approval process with the carriers start.
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4.11. What are the payment terms for the service charges?
Service charges need to be paid at least 7 business days prior to launch of the premium service.
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4.12. What are the payment terms for the outpayments ?
Carriers are paying Quios between 45 and 90 days after the end of the month in which the charge occurred. Quios will pay you within 30 days after receipt of carrier outpayment.
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4.13. What about end-user refunds?
You assumes full responsibility for refunding end-users when the situation arises. Quios assumes no responsibility for refunding end-users.
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4.14. Are there any message charges involved in premium transactions?
No. A premium transaction usually consists of an MO message requesting a service, and a premium charge MT message delivering that service, and triggering the billing transaction. There may be a small charge to you for receiving the MO message (depending on the price model you choose) but there is never a charge for sending the premium billed MT message.
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4.15. What is the end-user paying for the premium transactions?
A premium transaction usually consists of an MO message requesting a service, and a premium charged MT message delivering that service, and triggering the billing transaction:

(i) MO message: If the end-user's phone plan includes an SMS bundle, the MO will be deducted from this credit. If the user does not subscribe to an SMS bundle, they will be charged the standard rate for an SMS MO (for most carriers: $0.15, subject to change)

(ii) Premium MT message: End-users will be charged the specified premium charge for premium messages on all carriers except Verizon. On Verizon, end-users will be charged the premium charge PLUS the standard charge for receiving an MT message ($0.15, subject to change).

(iii) Non-Premium MT message: End-users will typically incur the regular MT charge on all carriers.


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4.16. How is revenue share determined?
Revenue share is determined from the confirmed billing statistics provided by the carriers. The carriers take their predetermined share of the revenue from a campaign and refund to Quios the remainder. Quios refunds to you your share of the revenue while retaining a prearranged share (except for 'Flat Rate' pricing in which case we refund you 100% of what we receive). You receive detailed reports and traffic statements.
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4.17. What is the revenue share and invoicing process?

  • As soon as Quios receives payment from the carriers, Quios will provide you with a traffic statement, detailing the volume of premium transactions and associated revenue share amount.
  • You will receive payment for your own revenue share within 30 days after receipt of the funds from the carrier. Quios employs a self-billing system, so you don't need to invoice Quios to get paid.

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4.18. Will I get paid for all my submitted messages?
You are compensated based on the number of messages the carriers report in their billing statistics. From past experience, the number of submitted messages and the number of billed messages often do not match. The Success Billing Ratio (SBR) is defined as the number of messages effectively billed by the carrier, divided by the number of messages submitted to the carrier. E.g. if you submit 100 messages and the carrier traffic report only lists 95, the SBR will be 95%. The SBR varies by carrier and by service. Subscription services tend to have lower SBRs than one-off services. Other reasons may be insufficient credit (only for prepaid cards), charge-backs, etc.
Given the low percentage of prepaid cards in the US, the SBR is expected to be reasonably high (>80%), and very much dependent on the precise nature of the service. You can significantly influence the SBR rate by ensuring proper communication of all relevant terms and conditions and setting the right service expectations. When end-users start complaining about a particular service, its associated SBR will drop significantly and carriers are likely to suspend the campaign.
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4.19. What management information reports are available?
Quios provides two types of reports:

(i) Extranet reports: include summary statistics and detailed CDRs for all messages managed by the Quios platform.

(ii) Carrier traffic reports: these are the reports received from the carrier, detailing how many messages were effectively billed.

Experience shows that these two reports will not match completely. See 4.18 for a more detailed explanation on why this is the case and how it will impact outpayments.
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4.20. Ok, I got it. I’m ready to start. What are the next steps?
Contact us to receive our FREE white paper and a customized quote.
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